Renting Vs Mortgage ?

[Guest sjs]

wondered everyones opinion on this

 

i am so desperate to buy as quickly as we can after we arrive. maybe its because we have a mortgage here and we have never rented b4. but is this the way to go or is renting - in the long term - a better idea? we are taking our furniture so would need an unfurnished place if we were to rent

 

thanks sjs

[Guest Guest75]

It's really your call.

 

There are pro's and con's for each.

At least property prices are stabilising here so no rush to get back onto the property ladder.

You do have to be pretty sure where you'd want to live as the costs of buying and then moving again can be enormous - stamp duty is high here!

 

Renting gives you a breather in which to assess the entire suburbs - you may suddenly get a job at the other end of the city - don't want to be commuting half of your day??

 

Any capital can be bunged into the bank for a while - 8.60% for term deposit.

 

Good luck:)

[cormcvcr]

Hi there,

 

before we arrived we had the intention of renting for 6 months max and buying as soon after as we could.

 

Now......we have a fairly nice rental ($350pw), enquired about a mortgage for a property the same size as our rental and found it to be out of our league ($600pw) -this was not including rates/water/repairs.

 

So we have now taken on our rental for an additional year, the rent includes rates, water and of course if anything breaks down the owners fix it. That in comparison to a mortgage, we are definately better off in the situation we are in at the moment.

 

As Tyke says it's individual preference. We are giving ourselves time to adjust to the cost of living before we jump in to buy a house and get our work situation on a steady incline (both OH and myself are self employed). We have two young children and need to take our situation very seriously for their sake. Yes I would love my own house, after all I like many others have been dreaming about our Oz life for sometime before we came over, but I have to be realistic and if I jumped into the housing market too quickly, may well have found myself back to the UK with nothing left to show for it, as affordability would have been a big problem.

 

Good luck with whatever you decide and all the above is only about my situation and my opinion x

[laura girling]

wondered everyones opinion on this

 

i am so desperate to buy as quickly as we can after we arrive. maybe its because we have a mortgage here and we have never rented b4. but is this the way to go or is renting - in the long term - a better idea? we are taking our furniture so would need an unfurnished place if we were to rent

 

thanks sjs

:idea:just a thought were putting our house on for rental we live at westlake shore on the beach great views in about a months time any good for u the price per aweek is $380 .send us an email laura.girling@yahoo com.au

[Andrew from Vista Financial]

I don't think that you should rush in to buying either, the house prices are/have definitely slowed here in Adelaide. Also interest rates here are very high. Also talk of two more possible rises this year!!!

 

Take your time, no rush, maybe rent for 6 -12 months first and save some money for the extremely high stamp duty.

 

Just my opinion.

 

Andy

[Guest sjs]

thank you for your responses everyone - very interesting

 

i think i have a bee in my bonet about owning my own home as i say i have never rented b4 though and this may be why. what you are all saying about renting though makes absolute sense and my husband has always said we should not rush into buying, he will say 'told you so' now

 

but before i begin to accept i could maybe have been wrong about this - what about an unfurnished rental ? and will i feel 'at home' in a rental ?

 

dont want to make many moves as i also have 2 very young kids 4yrs and nearly 2yrs

 

any further responses most welcome

 

sjs

[Guest caoimhe]

This is something I have thought a lot about.

I have a complex about renting and therfore paying someone else's mortgage but the costs of buying ie stamp duty is very high so we don't know wether to rent until we get permanent residency (going on temp visa) or buy asap.

But what if we rent in an area and want to buy sonewhere else and have to change the childrens school- don't want to do this as they may have settled after being moved from here.

 

Still none the wiser:nah:

 

Good luck with your choice

[Guest soggy]

thank you for your responses everyone - very interesting

 

i think i have a bee in my bonet about owning my own home as i say i have never rented b4 though and this may be why. what you are all saying about renting though makes absolute sense and my husband has always said we should not rush into buying, he will say 'told you so' now

 

but before i begin to accept i could maybe have been wrong about this - what about an unfurnished rental ? and will i feel 'at home' in a rental ?

 

dont want to make many moves as i also have 2 very young kids 4yrs and nearly 2yrs

 

any further responses most welcome

 

sjs

 

Hi,

99% of rentals seem to be unfurnished here so no problem there, as for the decision to rent or buy, I had never rented until now and am happy to do so for now, the cost between renting and buying in Australia are different to in the uk and so the decision to rent or buy may be different to, I like many others find myself living in a different part of Adelaide than I expected due to work, but know I wont be here for the long term so renting is right for me for now.

 

Simon:)

[Guest Deb17]

I would love to buy a place, like most people given the choice, but whereas in the UK rental costs were often more expensive than a mortgage, over here it is the opposite. For most families, renting is a more affordable option, although the quality of the properties available can be erratic and I have noticed rental prices have risen a lot in the last two years as landlords rush to make their fast bucks at our expense. I am quite bitter about landlords, now in the position of having to move for a third time, since the lovely house we have lived in for a year has been sold to a private buyer. More packing, moving and rent bond costs!

[Guest Django]

in the UK rental costs were often more expensive than a mortgage, over here it is the opposite.

 

 

Yeah how is this possible???

 

I have thought about this a lot. How do landlords charge a rent that is quite a lot less than the mortgage repayments????

 

I ain't complaining coz we are going to rent but something does quite add up.

 

Pete

[Guest Deb17]

Yeah how is this possible???

 

I have thought about this a lot. How do landlords charge a rent that is quite a lot less than the mortgage repayments????

 

I ain't complaining coz we are going to rent but something does quite add up.

 

Pete

 

It's something to do with negative gearing when it comes to paying their taxes. They can write off losses to do with investment properties and pay a whole lot less tax. Ask Andrew or Jim the financial men...I can't get my head round it either, but it must work, seeing as there are so many rich geezers swanning around here with bulging investment portfolios, even the local property manager we encountered the other day. She must have been, ooh, all of 25! (So, naturally, I wanted to strangle her!)

[Rachiegarlo]

it's basically about the property not making you a profit, or much of one, so the loss reduces income which reduces tax payable......meanwhile the property gains value.

[Guest sjs]

I would love to buy a place, like most people given the choice, but whereas in the UK rental costs were often more expensive than a mortgage, over here it is the opposite. For most families, renting is a more affordable option, although the quality of the properties available can be erratic and I have noticed rental prices have risen a lot in the last two years as landlords rush to make their fast bucks at our expense. I am quite bitter about landlords, now in the position of having to move for a third time, since the lovely house we have lived in for a year has been sold to a private buyer. More packing, moving and rent bond costs![/quote

 

OMG you have had to move 3 times :nah:i dont know if i could cope with the emotional strain of that with the kids. something else to really consider.

 

it is something i have seen a lot of come to think of it when you look at realestate they mention that they have a 'good tennant willing to stay' - i am sorry you are having to move on again but i appreciate the post as it is all helping very much with my thought process

 

thanks again

 

sjs

[Guest Django]

So whats to stop Tracey buying a house and renting it out to me???

 

We can save ourselves a fortune. :jiggy:

 

 

Pete

[Guest Guzzler&Sas]

So whats to stop Tracey buying a house and renting it out to me???

 

We can save ourselves a fortune. :jiggy:

 

 

Pete

 

Surely Tracey would want a decent tenant:biglaugh:,

 

Guzzler

[Guest Trakki]

Surely Tracey would want a decent tenant:biglaugh:,

 

Guzzler

 

 

definitely no kids in my rentals!!! :biglaugh:

[Guest caoimhe]

definitely no kids in my rentals!!! :biglaugh:

My kidda woman:notworthy:

[Guest chippie74]

Just wanna say about our experience since landing here in adelaide. after the OAA for 6 weeks we got a funished rental in happyvalley which we had for 6 months .The rental was $240 per wk for a lovely 3 bed house garage ect.We decided to buy a small 2 bed unit in reynella as theres only 2 of us and we are finding we are paying an extra $400 per month on extra bills/morage ect for alot less house.We have only been here for 3 months and thinking of selling up and going back renting

[Guest sjs]

Just wanna say about our experience since landing here in adelaide. after the OAA for 6 weeks we got a funished rental in happyvalley which we had for 6 months .The rental was $240 per wk for a lovely 3 bed house garage ect.We decided to buy a small 2 bed unit in reynella as theres only 2 of us and we are finding we are paying an extra $400 per month on extra bills/morage ect for alot less house.We have only been here for 3 months and thinking of selling up and going back renting

 

 

thanks for that reply chippie74 - much appreciated

 

good luck with whatever you decide to do :v_SPIN:

 

sjs